DOBI Issues Bulletin Adjusting “High Cost Home Loan” Threshold

The NJ Department of Banking and Insurance (DOBI) has issued its annual notice (Bulletin No. 19-02), establishing the threshold for a “high cost home loan” in accordance with the New Jersey Home Ownership Act of 2002.

The Act requires an annual review and, if necessary, adjustment of the maximum principal amount that will, subject to the other triggering provisions in the Act, result in a loan being considered a “high cost home loan.” This adjustment is based on the last published increase in the housing component of the national Consumer Price Index, New York – Northern New Jersey Region. The maximum principal amount as specified in the Act upon enactment was $350,000. The adjustment for the year 2018 was contained in Bulletin No. 17-10 and raised the maximum amount to $487,618.86.

The amount of $498,610 shall be effective for all completed applications on loans that may be subject to the Act received by the lender on or after January 1, 2019.